Answer the Following Questions Using the Information Below

question 41

Multiple Choice

Answer the following questions using the information below:
Meale Company makes a household appliance with model number X500. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from 2011 to 2012. The following additional data are available for 2011 and 2012:

-What is operating income for 2011?

• A)$450,000
• B)$1,000,000
• C)$750,000
• D)$700,000

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Definitions:

Public

The general population or community at large, often the recipient of information, services, or goods provided by governments or organizations.

External

Pertaining to or located outside of an entity or organization, often relating to the external environment, influences, or factors.

Common

Pertains to something that is usual, shared by multiple entities, or occurring frequently.

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, often related to economic activities.